HOMEWORK 3 Q5) A construction company is planning to purchase a new Backhoe. Most likely estimates are a first cost of $50,000, $20,000 Salvage value and a before-tax cash flow relation of the form NCF= -45,000+6.000t per year (t=1, 2, ..., 10) and NCF=80,000-5000t per year (t=12,13, ..., 18). The MARR for the company varies from 5% to 30% per year for different types of backhoe investments. The economic life of similar equipment varies from 6 to 15 years. Evaluate the sensitivity of PW and AW by varying: A) The parameter of MARR while assuming a constant n=10 years B) The parameter n, while MARR is constant at 10%. HOMEWORK 3 Q5) A construction company is planning to purchase a new Backhoe. Most likely estimates are a first cost of $50,000, $20,000 Salvage value and a before-tax cash flow relation of the form NCF= -45,000+6.000t per year (t=1, 2, ..., 10) and NCF=80,000-5000t per year (t=12,13, ..., 18). The MARR for the company varies from 5% to 30% per year for different types of backhoe investments. The economic life of similar equipment varies from 6 to 15 years. Evaluate the sensitivity of PW and AW by varying: A) The parameter of MARR while assuming a constant n=10 years B) The parameter n, while MARR is constant at 10%